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UNITED  STATES  fTARIFF  COMMISSION,  WASHINGTON 


INFORMATION  CONCERNING 
THE  DOMESTIC 

POTATO-PRODUCT  INDUSTRIES 

POTATO  FLOUR 

DRIED  OR  DEHYDRATED  POTATOES 
POTATO  STARCH  POTATO  DEXTRINE 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1919 


UNITED  STATES  TARIFF  COMMISSION,  WASHINGTON 


INFORMATION  CONCERNING 
THE  DOMESTIC 

POTATO-PRODUCT  INDUSTRIES 

POTATO  FLOUR 

DRIED  OR  DEHYDRATED  POTATOES 
POTATO  STARCH  POTATO  DEXTRINE 


PRINTED  FOR  USE  OF 

COMMITTEE  ON  WAYS  AND  MEANS 

HOUSE  OF  REPRESENTATIVES 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1919 


UNITED  STATES  TARIFF  COMMISSION. 

OFFICE,  1322  NEW  YORK  AVENUE,  WASHINGTON,  D.  C. 

COMMISSIONERS, 

WILLIAM  KENT, 


LETTER  OF  TRANSMITTAL. 


UNITED  STATES  TARIFF  COMMISSION, 

Washington,  September  4,  1919. 
Committee  on  Ways  and  Means,  House  of  Representatives: 

I  have  the  honor  to  transmit  herewith,  in  accordance  with  your 
request,  information  compiled  by  the  United  States  Tariff  Commission 
on  the  domestic  potato-product  industries. 
Very  respectfully, 

THOMAS  WALKER  PAGE, 

Acting  Chairman. 


CONTENTS. 

Page. 

Letter  of  transmitted 3 

Summary 7 

Industrial  uses  of  the  potato 7 

Potato-product  industries  in  the  United  States 8 

Potato-product  industries  in  Europe 9 

Import  duties 10 

Tariff  considerations 11 

Potato  flour 11 

Uses 11 

Processes 11 

Domestic  production 12 

Prices 12 

Tariff  history  and  customs  decisions .' 12 

Imports 12 

Dried  or  dehydrated  potatoes 13 

Uses  and  processes : 13 

Production 13 

German  potato-drying  industry 13 

Tariff  history 14 

Potato  starch 14 

Description 14 

Uses 14 

Manufacture : 14 

Domestic  production 14 

Production  in  foreign  countries 15 

German  production  of  potato  products,  1910-11 15 

Imports 16 

Exports 17 

Prices 18 

Tariff  history 19 

Potato  dextrine 19 

Description 19 

Uses 20 

Manufacture 20 

Domestic  production ^ 20 

Foreign  production ' 21 

Imports  and  exports 21 

Prices 21 

Tariff  history 

Customs  Decisions 23 

Bibliography 

Appendix 25 

Definition  of  potato  flour,  United  States  Department  of  Agriculture 25 

Customs  decisions 25 

5 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


SUMMARY. 

INDUSTRIAL    USES    OF   THE    POTATO. 

The  white  or  Irish  potato  contains  75  to  80  per  cent  of  water,  15 
to  25  per  cent  of  starch,  about  2  per  cent  of  proteins,  and  2  or  3  per 
cent  of  fiber  and  mineral  salts,  or  ash.  Its  value  as  a  food  and  in 
the  industries  is  due  main!}-  to  its  content  of  the  carbohydrate,  starch. 
Starch,  either  directly  as  such  or  through  derivatives  such  as  glucose, 
alcohol,  and  dextrine,  is  used  in  innumerable  products  and  is  essen- 
tial to  many  industries.  It  occurs  in  many  vegetable  substances 
besides  the  potato,  the  most  important  commercially  being  corn,  rice, 
wheat,  cassava,  sago,  and  arrowroot.  While  potato  starch  and  its  de- 
rived products  are  preferred  for  a  few  purposes,  it  is  competitive  with 
that  made  from  other  products.  Whether  one  kind  or  another  is 
bought,  is  largely  a  matter  of  price;  and  the  selection  of  the  raw  mate- 
rial for  starch  manufacture  is  dependent  upon  its  availability  and  the 
cost  of  extraction.  In  the  United  States,  which  produces  more  than 
twice  as  much  corn  as  the  rest  of  the  world  combined,  corn  is  the  prin- 
cipal source  of  starch  and  its  products;  in  the  industrial  nations  of 
Europe,  whose  climate  is  unfavorable  for  corn  production,  but  whose 
physical  and  economic  conditions  give  them  a  similar  preeminence 
in  potato  production,  potatoes  take  the  place  of  corn  as  the  primary 
raw  material. 

The  potato  serves  as  a  raw  material  for  the  manufacture  of  seven 
products,  of  which  live  are  of  considerable  industrial  importance  and 
two  have  great  promise. 

1.  Potato  flour  consists  of  the  whole  potato  except  the  water  and 
peel,  washed,  cooked  and  dried,  ground,  and  bolted  to  a  fine  flour. 
Potato  flour  is  used  chiefly  for  mixing  with  other  bread  flours  and  for 
other  food  products. 

2.  Dried  or  dehydrated  potatoes,  like  potato  flour,  contains  all  of 
the  content  of  the  raw  potato  except  water  and  peel,  but  is  sold  in  the 
form  of  chips,  flakes,  or  ''rice"  instead  of  as  a  powder  or  flour.     The 
potato  is  first  washed  and  peeled,  and  then   either  sliced,  .parboiled, 
and    dried,  or   is   steamed;  forced    through  a  die  plate,  and    dried. 
Dried  potatoes  are  used  almost  entirely  for  food.     This  product  has 
many  advantages  over  fresh  potatoes:  the  heavy  losses  by  decay  or 
freezing  are  eliminated,  it  may  be  kept  for  a  considerable  period  with- 
out special  measures  as  to  temperature  and  ventilation,  and  the  cost 
of  freight  and  handling  on  the  large  percentage  of  water  present  in 
fresh  potatoes  is  avoided.  . 

3.  Potato  starch  is  made  from  potatoes  by  eliminating,  as  completely 
as  possible,  the  content  of  protein,  fiber,  and  water.      It  is  used  prin- 
cipally in    the   textile   industries  as   a   si/ing   in   weaving,   in    textile 
printing,  and  in  the  finishing  of  cloth.    It  lias  minor  uses  in  laundering, 
paper  manufacture,   in    food    products,    and    in    the    manufacture   of 
dextrine. 


DOMESTIC   POTATO-PRODUCT   INDUSTRIES. 

4.  Dextrine  or  British  gum  is  made  from  starch  by  the  action  of  heat 
or  acids.     Its  chief  use  is  in  the  dyeing,  printing,  and  finishing  of 
textile  fabrics.     It  is  also  used  as  an  adhesive  for  gummed  labels, 
envelopes,  and  stamps,  and  has  many  other  uses. 

5.  Glucose,  dextrose,  or  starch  sugar  is  made  on  a  large  scale  in 
Europe  from  potato  starch,  but  in  the  United  States  cornstarch  is 
used  almost  exclusively   as  the  raw  material  of  the  glucose  industry. 

6.  Alcohol  is  made  in  large  quantities  in  Europe  from  potatoes, 
but  in  the  United  States  molasses  is  the  principal  raw  material  of 
the  industrial  alcohol  industry. 

7.  Lactic  acid  is  used  in  tanning  leather,  in  dyeing  and  calico  print- 
ing, and  in  foods  and  beverages.     It  is  made  on  a  large  scale  in  Ger- 
many from  potatoes,  but  in  the  United  States  is  made  from  vegetable 
ivory  waste  and  from  corn  meal. 

POTATO-PRODUCT    INDUSTRIES    IN    THE    UNITED    STATES. 

The  industries  which  utilize  potatoes  have  a  useful  economic  func- 
tion in  providing  an  outlet  for  large  quantities  of  lower  grade,  cull, 
and  surplus  stock  that  would  otherwise  be  wasted.  It  has  been 
roughly  estimated  that  approximately  50,000,000  bushels  of  potatoes 
are  wasted  annually  in  the  United  States.  Relative  to  the  extensive 
use  made  of  the  white  or  Irish  potato  in  the  manufacturing  and 
chemical  industries  of  Europe,  or  to  its  use  there  as  a  food  and  feed- 
stuff, the  consumption  in  the  United  States  is  small.  The  greater 
part  of  the  United  States  is  outside  of  the  natural  potato-growing 
belt,  and  though  the  adaptability  of  the  crop  permits  of  its  produc- 
tion in  almost  every  county,  yields  are  much  smaller  than  in  Europe. 
Factories  must  be  located  in  regions  whose  production  is  sufficiently 
large  to  yield  a  large  supply  of  the  lower  grades,  as  it  is  unprofitable 
to  use  No.  1  potatoes  for  industrial  purposes.  Such  regions  are  com- 
paratively few,  and  are  widely  separated. 

Potato  starch  has  been  made  in  the  United  States  for  many  years. 
Although  the  most  important  of  the  potato  products  in  this  country, 
the  industry  has  been  declining,  while  the  volume  of  imports 
increased  nearly  fourfold  between  1904  and  1914. 

Production  and  value  of  potato  starch. 
[From  the  United  States  Census.] 


Year. 

]  Number 
of          Pro'luetion. 
1  factories,  i 

Value. 

1904  ... 

Pounds. 

l.'U         27,709,400 

$924,476 

1909.  .  ' 

110         24  873  415 

823  019 

1914  

82         23,  ">40,  472 

718,006 

Imports  of  potato  starch  rose  from  4,438,038  pounds  in  1904  to 
lo,o IS, 434  pounds  in  1914;  they  came  chiefly  from  Germany  and 
from  Holland.  Potato  starch  can  not  be  produced  and  sold  in  the 
United  States  as  cheaply  as  cornstarch,  and  its  market  is  therefore 
limited  to  the  comparatively  few  purposes  for  which  potato  starch  is 
preferred.  The  output  of  cornstarch  increased  from  311,140,184 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES.  9 

pounds,  valued  at  $8,878,450  in  1904,  to  574,247,697  pounds,  valued 
at  $13,784,654  in  1914.  Ameri  an  cornstarch  and  glucose  compete 
in  the  world  markets  with  similar  foreign  products,  and  the  exports 
of  eornstarch  greatly  exceed  the  imports  of  potato  starch. 

The  manufacture  of  potato  flour  and  dried  potatoes  in  the  United 
States  was  begun  during  the  war  period  and  is  as  yet  not  firmly 
established.  A  large  domestic  demand  for  these  products  has  still  to 
be  created.  While  cull  potatoes  may  be  used  for  starch  production, 
flour  and  dried  potatoes,  being  foodstuffs,  require  sound  stock,  but 
not  necessarily  the  No.  1  grade  which  constitutes  the  great  bulk  of 
the  table  potatoes. 

Dextrine  is  made  from  potato  starch  in  this  country,  but  large 
amounts  are  also  made  from  cornstarch  and  tapioca. 

POTATO-PRODUCT    INDUSTRIES    IN    EUROPE. 

Tn  Europe,  and  especially  in  Germany,  the  conditions  are  quit<» 
different.  Europe  produces  over  90  per  cent  of  the  world's  annual 
potato  harvest,  and  the  United  States  only  about  6  per  cent.  The 
cool  and  moist  climate,  which  is  not  suitable  for  corn  production,  is 
favorable  to  the  growing  of  potatoes,  while  its  large  yields  to  the 
acre  and  ready  response  to  intensive  cultivation  adapt  the  crop  to 
the  limited  acreages  and  cheaper  labor  of  Europe.  There  the  potato 
is  a  much  more  important  part  of  the  food  supply.  Yields  to  the 
acre  more  than  twice  as  large  as  in  the  United  States  are  usually 
obtained,  under  more  intensive  methods  of  cultivation  and  with  a 
liberal  use  of  fertilizers.  Varieties  considerably  higher  in  starch 
content  than  are  grown  in  this  country  have  been  developed  for 
starch  manufacture,  and  prices  of  potatoes  are  much  lower.  More- 
over, while  our  quarantines,  due  to  the  danger  of  importing  foreign 
plant  diseases,  prohibit  importations  of  fresh  potatoes  from  nearly 
all  the  important  producing  countries,  indirectly  they  encourage 
shipments  in  the  form  of  the  prepared  products. 

In  1914  the  German  harvest  of  potatoes  was  over  1,674  million 
bushels,  while  that  of  the  United  States  was  about  410  millions. 
The  use  of  the  crop  is  different  in  the  two  countries.  It  has  been 
estimated  that  in  the  United  States  68  per  cent  is  used  for  human 
food,  5  per  cent  is  fed  to  farm  animals,  11  per  cent  is  saved  for  seed, 
15  per  cent  is  lost  by  decay  and  freezing,  and  not  more  than  1  per 
cent  is  used  in  the  manufacture  of  starch  or  other  potato  products. 
In  Germany,  however,  28  per  cent  of  the  crop  is  used  for  rood  (the 
average  per  capita  consumption  being  much  larger  than  in  the 
United  States),  40  per  cent  is  fed  to  farm  animals.  12  per  cent  is 
used  for  seed,  10  per  cent  is  lost  by  decay,  6  per  cent  consumed  in 
the  production  of  alcohol,  and  4  per  cent  is  used  for  making  starch, 
glucose,  and  dextrine.  Farm  stills  and  factories  are  encouraged, 
and  various  special  measures  have  been  taken  to  encourage  the 
various  branches  of  potato  manufacture.  The  by-products  of 
alcohol  and  starch  manufacture  are  fed  to  live  stock.  Associations 
or  k artels  of  producers  wore  formed  to  control  the  distribution  and 
prices  of  the  several  products  in  the  home  markets  and  to  develop 
foreign  markets. 

135455—19—2 


10  DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 

IMPORT  DUTIES. 

The  tariff  act  of  October  3,  1913,  contains  the  following  provisions: 

PAR.  581  (free  list").  Potatoes,  and  potatoes  dried,  desiccated,  or  otherwise  pre- 
pared, not  specially  provided  for  in  this  section:  Provided,  That  any  of  the  foregoing 
specified  articles  shall  be  subject  to  a  duty  of  10  per  centum  ad  valorem  when  imported 
directly  or  indirectly  from  a  country,  dependency,  or  other  subdivision  of  govern- 
ment which  imposes  a  duty  on  such  articles  imported  from  the  United  States. 

PAR.  234.  Starch,  made  from  potatoes,  1  cent  per  pound;  all  other  starch,  includ- 
ing all  preparations,  from  whatever  substances  produced,  fit  for  use  as  starch,  one- 
half  cent  per  pound. 

PAR.  36.  Gums:  *  *  *  dextrine,  made  from  potato  starch  or  potato  flour,  ]{ 
cents  per  pound. 

With  regard  to  fresh  potatoes,  it  is  noteworthy  that  shipments  from 
the  countries  of  largest  production  are  prohibited,  under  regulations 
promulgated  by  the  Federal  Horticultural  Board  in  accordance  with 
the  plant  quarantine  act  of  August  20,  1912,  designed  to  prevent  the 
entry  of  injurious  plant  diseases  and  insect  pests.  Only  Canada,  the 
Bermudas,  Holland,  Belgium,  and  certain  regions  of  relatively  insig- 
nificant production  are  permitted  to  export  to  the  United  States  (the 
Territories  of  Porto  Rico  and  Hawaii  are  exempt  from  this  restric- 
tion). The  reciprocal  provision  of  paragraph  581,  permitting  entry 
free  of  duty,  applies  to  Canada,  the  Bermudas,  Holland,  and  Belgium. 

Of  the  countries  from  which  effective  competition  in  potato  flour 
and  dried  or  prepared  potatoes  appears  possible,  the  following  may 
ship  these  products  to  the  United  States  free  of  duty  under  the 
reciprocal  provision  of  paragraph  581  of  the  1913  tariff:  Canada, 
Belgium,  Denmark,  Holland,  ana  the  United  Kingdom. 

Potato  starch  was  formerly  incorrectly  designated  in  the  trade  as 
<; potato  flour."  Under  Treasury  Decision  No.  16955  of  February 
4,  1896,  so-called  ''potato  flour"  consisting  really  of  potato  starch 
was  held  dutiable  under  paragraph  232  of  the  tariff  act  of  1894  as 
"starch"  rather  than  as  a  nonenumerated  article.  (See  Appendix, 
p.  25,  for  reprint  of  this  decision.)  On  August  18,  1915,  the  Bureau 
of  Chemistry  of  the  Department  of  Agriculture,  under  the  authority 
of  the  pure  food  and  drugs  act  of  June  30,  1906,  ruled  that  the  term 
"potato  flour"  can  not  oe  applied  to  a  product  containing  starch 
alone,  but  only  to  a  finely  divided  or  powdered  product  containing 
fat,  fiber,  and  ash  constituents  from  the  edible  portion  of  the  potato. 
(See  Appendix,  p.  25,  for  reprint  of  this  decision.) 

On  March  5,  1914,  the  Treasury  Department  ruled  that  "potato 
flour"  should  be  classified  as  a  nonenumerated  manufactured  article 
under  paragraph  385  of  the  act  of  1913  rather  than  as  "potatoes, 
dried,  desiccated,  or  otherwise  prepared"  under  paragraph  581  (T.  D. 
34236).  This  decision  was  sustained  by  the  Board  of  General 
Appraisers  (Abstract  37090,  T.  D.  35020),  but  was  overruled  on 
March  3,  1915,  by  the  Court  of  Customs  Appeals  (Stein  v.  United 
States,  6  Ct.  Cnst.  Appls.,  154),  which  held  that  the  "potato  ground 
meal''  or  "potato  flour"  consisting  of  the  entire  potato,  inducing 
the  skin  or  of  the  edible  contents  of  the  potato,  should  be  classified 
under  paragraph  581  of  the  act  of  October  3,  1913,  as  "potatoes, 
dried,  desiccated,  or  otherwise  prepared,"  rather  than  as  a  non- 
enumerated  article.  (See  Appendix,  p.  26,  for  a  reprint  of  this 
decision.) 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES.  11 

TARIFF  CONSIDERATIONS. 

The  commission  has  no  tariff  policy  and  makes  no  recommendation 
of  rates,  but  if  Congress  determines  to  impose  duties  it  should  be 
borne  in  mind— 

(1)  That  as  potato  starch  is  the  raw  material  used  in  the  manu- 
facture of  dextrine,  a  duty,  if  any,  upon  dextrine  ought  logically  to 
be  adjusted  to  that  of  starch.     The  differential  allowed  in  the  1913 
tariff  was  one-fourth  cent  per  pound.     While  about  20  per  cent  is 
lost  in  the  process  of  dextrine  manufacture,  manufacturers  regain 
part  of  this  loss  by  allowing  the  product  to  absorb  moisture. 

(2)  That  intermediate  products,  such  as  potato  flakes  and  pressed 
potato  cake,  may  be  imported  free  of  duty  under  paragraph  581; 
such  products  may  be  produced  more  cheaply  in  Europe.     If  a  duty 
is  placed  on  potato  flour  or  starch,  provision  logically  should  be  made 
for  ''potatoes,   dried  or  otherwise  prepared,"   in  order  to  prevent 
evasion  through  the  importation  of  semi-manufactured  products. 

(3)  If  it  be  the  legislative  policy  to  protect  by  means  of  import 
duties  the  several  branches  of  manufacture  which  provide  an  outlet 
for  surplus  or  lower  grade  potatoes,  provision  should  also  be  made 
for  dried  or  dehydrated  potatoes. 

(4)  The  use  of  the  term  "natural"   as  applied  to  potato  flour, 
current  in  Germany  probably  to  distinguish  it  from  potato  starch,  a 
similar  product,  should  be  avoided,  as  it  is  apt  to  give  rise  to  various 
interpretations,  is  unnecessary  because  of  decisions  under  the  Pure 
Food  and  Drugs  act,  and  may  cause  confusion. 

POTATO  FLOUR. 


During  the  shortage  of  wheat  incident  to  the  world  war,  potato 
flour  was  extensively  used,  especially  in  Europe,  for  mixing  with 
other  bread  flours.  Bread  with  as  much  as  50  per  cent  of  this  flour 
can  be  made.  This  has  been  the  principal  outlet;  it  may  also  be 
used  in  making  soups,  cakes,  and  many  similar  preparations.  It  is 
claimed  that  an  admixture  of  5  per  cent  of  potato  to  wheat  flour 
improves  the  flavor  of  bread  and  enables  it  to  retain  its  freshness  for 
a  longer  period.  Moreover,  by  reason  of  its  characteristic  quality 
of  absorbing  moisture,  bakers  may  obtain  a  larger  number  of  loaves 
from  a  given  unit  of  flour  than  by  using  wheat  flour  exclusively. 
For  this  reason  potato  flour  may  be  used  by  bakers  even  when  higher 
in  price  than  wneat  flour.  However,  a  large  domestic  demand  has 
yet  to  be  created. 

PROCESSES. 

The  machine  process  most  generally  employed  was  developed  in 
Germany.  Sound  slock  below  the  Federal  grade  of  Xo.  1  is  used. 
Potatoes  are  washed,  cooked,  dried  on  a  roll  or  ''flake'  drier,  and  the 
"flakes,"  scraped  from  the  drier,  arc  ground  and  bolted.  The  prod- 
ucts of  this  flaking  process  may  take  the  form  of  flakes,  which  may 
be  kept  for  a  considerable  period  without  spoiling,  of  a  coarse  meal, 
and  of  a  finely-ground  Hour.  It  requires  about  5  pounds  of  potatoes 
to  produce  1  pound  of  this  flour,  a  bushel  yielding  12  pounds. 


12 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


DOMESTIC   PRODUCTION. 

In  1918  five  potato  flour  factories  were  operating,  their  combined 
production  being  2,500,000  pounds.  Three  of  these  factories  are 
controlled  by  a  large  corporation,  which  is  surveying  the  field  with 
a  view  to  erecting  others  in  regions  of  large  production.  The  first 
domestic  plant  was  established  in  Idaho  in  1917;  four  others  are 
operating  in  Nebraska,  Michigan,  Wisconsin,  and  Minnesota. 

PRICES. 

Prices  for  potato  flour  are  approximately  the  same  as  for  starch 
(see  p.  18).  The  prewar  price  was  between  3  and  4  cents  per  pound. 
In  1914  the  average  declared  value  of  imports  was  3.2  cents  per  pound. 

TARIFF   HISTORY   AND    CUSTOMS   DECISIONS. 

Neither  the  existing  tariff  nor  those  previously  enacted  made  sepa- 
rate provision  for  potato  flour.  Under  a  decision  of  the  Court  of 
Customs  Appeals  (Stein  v.  U.  S.,  6  Ct.  Cust.  Appls.,  154)  potato  ground 
meal  or  flour,  invoiced  as  "kartoffelwalzmem,  obtained  by  reducing 
the  entire  potato  with  or  without  the  skin  to  a  state  of  flour  by  desic- 
cating and  grinding,  the  process  involving  the  application  of  sufficient 
heat  materially  to  modify  the  starch  granules,  was  declared  to  con- 
tain the  entire  and  chemically  unaltered  elements  of  which  potatoes 
are  composed  and  not  having  acquired  a  new  name,  character,  or  use 
and  serving  the  culinary  purposes  of  potatoes,  was  held  to  be  exempt 
from  duty  under  paragraph  581  of  the  tariff  act  of  October  3,  1913, 
unless  ''imported  directly  or  indirectly  from  a  country,  dependency, 
or  other  subdivision  of  government  which  imposes  a  duty  on  such 
articles  imported  from  the  United  States, ' '  in  which  case  a  duty  of 
10  per  cent  ad  valorem  applies.  This  flour  was  found  to  be  chiefly 
used  for  breadmaking,  a  minor  use  being  the  making  of  soups  and 
other  food  products. 

IMPORTS. 

While  potato  flour  has  not  been  separately  enumerated  in  the  com- 
merce and  navigation  statistics  of  the  United  States,  the  imports  of 
"potatoes,  dried,  desiccated,  or  otherwise  prepared,"  apparently  con- 
sist chiefly  of  this  flour.  The  maximum  imports  occurred  in  1914, 
when  they  amounted  to  560,987  pounds,  valued  at  $17,937.  In  1918 
there  were  imported  449,034  pounds,  valued  at  $115,718. 

Imports  for  consumption. 
POTATOES,  DRIED,  DESICCATED,  OR  OTHERWISE  PREI'AKED. 


Fiscal  year. 

Rates  of  duty. 

Quan- 
tities. 

Values. 

Duties 
collected. 

Value 
ner  unit 
of 

imantity. 

Actual 
and  com- 
puted ad 
valorem 
rate. 

inu    ChcL'inning    Oct.    :i, 

Free.  .  .  . 

PIIUJI//K. 
KS,  12! 

Dollin. 
1,422 

Dnllm. 

Doll'ITK. 

0.  037 

Percent. 

im:<).i 

I!)1.3  

10  per  e.pnt  nd  valorem. 
Free  .... 

522,  NH 
13,  W3 

10,  515 

90S 

1,651.50 

.032 
.064 

10 

I'titi  

Id  percent  ad  valorem. 
Free  .... 

<>7,751 
J  -1,184 

2.338 
1.101 

233.  80 

.023 
.077 

10 

11)17  

10  per  cent  ad  valorem. 
Free  

5,  525 
3,417 

321 
74*) 

32.10 

.058 
.216 

10 

jii'v. 

10  per  cent  ad  valorem  . 
Free 

10,020 
fi  4-15 

1,80() 
2  ''20 

180.00 

.18 
.344 

10 

Id  per  cent  ad  valorem. 

442,589 

113,912 

11,391.20 

.268 

10 

1  Not  separately  stated  prior  to  Oct.  3, 1913. 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


13 


DRIED  OR  DEHYDRATED  POTATOES. 

USES    AND    PROCESSES. 

During  the  American  participation  in  the  World  War  large  quantities 
of  potatoes  were  dried  for  Army  use.  The  product  took  the  form  of 
potato  chips  or  dried,  sliced  and  "riced"  potatoes;  it  could  readily  be 
prepared  lor  use  under  field  or  camp  conditions.  Among  its  ad- 
vantages over  the  raw  potato  arc  the  elimination  of  waste  through 
decay  and  freezing,  ease  of  transportation,  storage  and  preparation, 
and  avoidance  of  much  of  the  loss  incident  to  the  usual  method  of 
peeling. 

The  manufacturing  process  is  more  expensive  than  that  involved 
in  making  potato  flour.  The  Army  specifications  required  the  use  of 
Xo.  1  potatoes,  but  small  or  slightly  damaged  stock  is  ordinarily  used. 
The  fresh  potatoes  are  first  run  through  a  washing  and  peeling  ma- 
chine, and  then  carried  on  a  "sorting  belt"  where  workers  eliminate 
unsuitable  stock.  Xext  it  is  either  sliced,  parboiled,  and  dried  in  a 
current  of  warm  air,  or  put  through  a''  ricing  process/'  i.  e.,  is  steamed, 
forced  through  a  die  plate  in  the  method  of  macaroni  manufacture, 
and  thoroughly  dried.  When  dried  until  thoroughly  brittle  these 
products  will  keep  indefinitely.  They  may  be  used  for  stews,  soups, 
und  similar  preparations,  and  may  also  be  ground  and  bolted  into 
flour.  Potato  flour  and  dried  potatoes  contain  all  the  constituents 
of  the  fresh  product,  the  peel  only  being  removed — in  the  flour  by 
bolting  and  in  the  dried  product  by  the  peeling  machine.  In  starcn 
manufacture  the  proteins  and  mineral  constituents  are  removed  as 
completely  as  possible. 

DOMESTIC    PRODUCTION. 

Sixteen  plants  were  producing  dehydrated  potatoes  in  1918,  their 
combined  output  being  about  7,000,000  pounds.  With  the  cessation 
of  hostilities  and  a  great  reduction  in  the  demands  of  the  military 
establishments,  the  industry  is  placed  on  an  uncertain  footing.  To 
a  greater  degree  than  in  the  case  of  potato  flour,  the  future  of  the 
drying  industry  is  dependent  upon  the  development  of  a  demand  for 
the  dried  product,  as  a  substitute  for  fresh  potatoes,  in  households, 
hotels,  and  restaurants. 

The  German  potatoe-drying  industry. l 


1908-09          1909-10  , 

1910-11 

170  1               254 

327 

Factories  using  as  raw  material: 

6  i                   8 

4 

164  ,               246 

323 

i 

bushels.  . 

5,898.774  !  12,222,302 

15,345,485 

Products: 
Cut  and  sliced  potatoes  

pounds.  . 
do  

14,263,762     35,163,370 
77,072,816  il.i7,143,888 

31,878.516 
204,0^7,776 

All  others  

do.... 

330,690  j        793,656 

661,380 

Total                          .        

do.... 

91,667,268  1  193,  100,914 

236,597,672 

1 

Source:  Statistiches  Jahrbuch  fur  das  Deutsche  Reich,  Berlin,  1911. 


14  DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 

TARIFF  HISTORY. 

"  Potatoes  dried,  desiccated,  or  otherwise  prepared,"  were  first  specif- 
ically provided  for  in  the  tariff  act  of  October  3,  1913,  paragraph  581. 
They  are  free  of  duty  when  from  countries  which  accord  like  treatment 
to  the  American  product;  when  from  other  countries  the  duty  is  10 
per  cent  ad  valorem,  which  was  equivalent  to  about  three-tenths  of 
a  cent  per  pound  in  1914. 

POTATO  STARCH. 
DESCRIPTION. 

Potato  starch  is  a  white  or  gray,  odorless  and  tasteless  powder. 
Chemically  it  is  identical  with  starch  from  other  sources  but  the 
physical  properties  of  potato  starch,  which  differ  slightly  from  those 
of  other  starches,  better  adapt  it  to  certain  industrial  uses,  especially 
in  the  textile  industry. 

USES. 

The  uses  of  starch  may  be  divided  into  three  classes:  (1)  For 
edible  purposes,  especially  in  puddings,  confectionery,  pastry,  and 
for  stiffening  ice  cream,  custard,  and  pie  fillings.  Starch  is  also  the 
largest  component  of  most  cereals  and  flours.  (2)  For  laundry  pur- 
poses. (3)  For  manufacturing  purposes,  including  weaving,  dyeing, 
printing,  and  finishing  textiles,  the  manufacture  of  dextrine,  soluble 
starch,  glucose,  alcohol,  and  lactic  acid  and  the  explosive,  nitrostarch. 

Potato  starch  competes  with  other  kinds  of  starch  for  these  uses 
and  being  more  expensive  than  cornstarch  is  used  in  relatively  small 
amounts  in  the  United  States.  In  the  textile  industry  and  in  the 
manufacture  of  dextrine,  potato  starch  has  certain  advantages  which 
give  it  a  market  even  at  a  higher  price.  Cornstarch  manufacturers 
have,  however,  found  means  to  make  varieties  suitable  for  use  in  the 
textile  industry  and  are  offering  increasingly  severe  competition  to 
potato  starch. 

.METHOD    OF    MANUFACTURE. 

The  manufacture  of  starch  from  potatoes  consists  simply  in  the 
mechanical  separation  of  the  starch  from  the  other  parts  of  the  tubers 
by  a  process  of  disintegrating  the  cells  and  washing  out  the  starch 
with  water.  The  quantity  of  starch  contained  in  the  raw  material 
varies  with  the  variety  of  the  potatoes.  In  Germany,  special  vari- 
eties of  potatoes  with  a  starch  content  of  20  to  25  per  cent  have 
been  developed  for  the  starch  industry.  In  the  United  States,  culls 
and  lower  grades,  containing  from  14  to  17  per  cent  of  starch,  are 
usually  employed. 

DOMESTIC    PRODUCTION. 

The  manufacture  of  starch  is  the  most  important  of  the  industrial 
uses  to  which  the  potato  is  put  in  the  United  States.  However,  the 
industry  is  declining  owing  to  the  severe  competition  of  cornstarch 
and  of  imported  potato  starch.  The  consumption  of  potatoes  by  the 
starch  factories  decreased  from  210,608,127  pounds  in  1909  to  169,- 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


15 


878, 784  pounds  in  1914  and  the  output  of  potato  starch  from  24, 873,41 5 
pounds  in  1909  to  23,540,472  pounds  in  1914.  The  number  of  estab- 
lishments reporting  the  manufacture  of  starch  has  decreased  from  131 
in  1904  to  1 10  in  1909  and  to  82  in  1914.  Of  the  89  factories  engaged 
in  the  manufacture  of  both  glucose  and  starch  in  1914,  51  were 
located  in  the  State  of  Maine,  7  in  Minnesota,  5  in  Illinois,  4  in 
Massachusetts,  and  the  remainder  were  distributed  among  14  other 
States.  Aroostook  County,  Me.,  is  the  principal  center  of  the  potato 
starch  industry  in  the  United  States. 

Production  of  potato  starch  and  cornstarch  in  the  United  States.* 


Year. 

Number 
of  fac- 
tories. 

Potato  starch. 

Cornstarch. 

Pounds. 

Value. 

Pounds. 

Value. 

1904   .  . 

131 

111) 
82 

27,  709,  400 
24.873,415 

23,540,472 

5924,470 
823,019 
718,00!) 

311,140,814 
638,825,366 

574,247,1197 
775  H91  649 

$8,  878,  450 
15,%2,91« 
13,784,654 

1909  . 

191-1   .  . 

1915  . 

1916  .  . 

8<>8,916,578 

1917  

Ntt,  131,  7.55 
481,  761,  893 

1918  (first  six  months) 



1  Figures  for  1904,  1909,  and  1914  are  from  the  Census  of  Manufactures;  those  for  1915-1918  were  com" 
piled  by  the  cornstarch  producers  and  taken  from  the  Textile  American,  December,  1918. 

PRODUCTION    IN    FOREIGN    COUNTRIES. 

In  Germany  about  4  per  cent  of  the  total  crop  of  potatoes  is  used 
for  the  manufacture  of  starch.  The  production  of  potato  starch  and 
related  products  in  Germany  for  the  fiscal  year  1910-11  is  shown  in 
the  following  table: 

German  production  of  potato  products,  1910-11. 


Quantity. 

Value. 

Potato  starch: 
Wet  starch          -   -   -          

Pounds. 
125,671,700 

$1,424,192 

383  019  70S 

8  447  S10 

7  948.905 

61,880 

5,  277,  592 

168.266 

Potato  meal  (lump)  

S26,  725 

2S,  560 

21,940.400 

550.  018 

(  !  lucose  sirup         

124,332.  385 

3,104.472 

9,673,123 

307'  734 

49  310  2SS 

1  404  914 

3,602  or  6 

107  100 

27,804,636 

144^942 

513  556  940 

212  295 

Total       

1,272,961,498 

15,962,184 

Source:  Vierteljahrshefte  ?,ur  Statistik  des  Deutschen  Reichs,  III  (p.)  114,  Berlin,  1914. 

As  a  result  of  the  total  elimination  of  Germany  from  the  world's 
markets  and  the  great  reduction  of  the  exports  from  the  Netherlands, 
Japan  produced  and  exported  large  quantities  of  starch  during  the 
war.  Prior  to  1917  the  exports  of  starch  from  Japan  were  not  shown 
separately  but  were  grouped  with  the  less  important  grains,  meals, 
and  groats.  In  1917  the  total  exports  of  starch  alone  were  given 
as  133,467,552  pounds  valued  at  $7, 483, 278.  Of  this  amount, 
68.65  per  cent  was  shipped  to  Great  Britain,  12.51  per  cent  to  the 
United  States,  and  the  remainder  to  France,  Egypt,  and  British  India. 


16 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


IMPORTS. 

Approximately  95  per  cent  of  the  starch  imported  into  the  United 
States  is  potato  starcn.  From  1904-1908  imports  averaged  6,121,589 
pounds  valued  at  $163,655,  from  1909-1913, 13,730,665  pounds  valued 
at  $375,767,  and  from  1914-1918  they  averaged  15,143,778  pounds 
valued  at  $704,712.  Before  the  war,  Germany  and  the  Netherlands 
supplied  practically  all  of  the  imports  but  during  the  last  two  years 
great  quantities  have  been  received  from  Japan.  Imports  from  that 
country  which  amounted  to  only  677,422  pounds  in  1916  rose  to 
18,008,666  pounds  in  1917  and  to  21,806,975  pounds  in  1918.  Of 
the  total  imports  of  starch  in  1918,  58  per  cent  entered  at  the  New 
York  customs  district  and  33  per  cent  at  the  Pacific  coast  districts. 

Imports  of  starch,  by  countries. 
[Fiscal  years.] 


191C 

1911 

191 

2 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Gorman  v 

8  993  273 

$234  062 

0  665  060 

$171  228 

7  268  433 

$216  426 

Netherlands 

1  304  993 

39  544 

459  693 

10  788 

6  823  852 

194  ase 

England 

177  507 

14,753 

335  023 

21,  952 

770,  505 

33  444 

Canada  

172 

14 

129 

8 

Japan 

39  2.53 

1  708 

36,  145 

1,463 

39,665 

1,588 

All  other 

346  284 

14,963 

442  C37 

17,  025 

938,853 

32,613 

Total 

10  861  310 

296  030 

7,938  730 

222,  470 

15,841,437 

478,  465 

1912 

1914 

191 

5 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Oorinany.       .   . 

6  312,661 

*178,296 

9,  2.52,  707 

S227,  723 

1,  583,  796 

$36,968 

Netherland?  

9,  480.  720 

228,  618 

5,  265.  399 

126,  283 

10,250,131 

239,  034 

England 

299  028 

21  8SO 

354,322 

23,  425 

916,  678 

46,  119 

(  anada.       .          .   . 

76 

5 

1,036 

39 

787 

34 

Japan 

49  523 

2  132 

51,804 

2,412 

61,  745 

2,643 

A  11  other 

567'  890 

26,  S53 

5a3,  166 

29,OiO 

410,216 

18,927 

Total 

16  710  49S 

457  784 

15,51S,434 

408,  922 

13,233,383 

343,  805 

191C 

1917 

, 

191 

8 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Oerinanv 

212  393 

>11   52H 

r>  soo 

.*537 

England 

913  218 

61  234 

827,364 

59,567 

<  anada 

62} 

52 

852,  893 

61,019 

1,213,340 

$109,673 

677  422 

23  643 

18  008  666 

799,  775 

21,80'>,975 

1,494,131 

All  other 

663  381 

27,  3,Hl 

952,  170 

52,  t02 

831,830 

69,673 

Total 

2  467,038 

123,838 

20,  647.  893 

973,530 

23,852,145 

1,673,477 

DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


17 


Imports  for  consumption . 

POTATO  STARCH. 


Fiscal  year. 

Rates 
of 
duty 
(per 
pound). 

Quantities. 

Value. 

Duty 
collected. 

Actual 
and  com- 
puted ad 
valorem 
rate. 

1908.... 

Cent*. 
H 

Pounds. 
4,544  .520 

$113,807 

$68  128 

Per  cent. 
59  90 

1909  

l| 

15,418,259 

351,256 

231,274 

65.84 

1910  

li 

9  812  905 

255,  040 

147  194 

57  71 

1911  

U 

7,724,912 

202,  482 

115,874 

57.23 

1912  

11 

14  010  532 

405,  135 

210,  158 

51  87 

1913  

1J 

14.176,119 

375,514 

212,642 

56.63 

1914'.... 

lj 

1  922,422 

49  200 

28  836 

58  61 

1914«  

1 

12  010,549 

284,384 

120,105 

42.23 

1915  

10  940  419 

253  823 

109  404 

43  10 

1916  

1 

2  337,717 

72,  738 

23,377 

32.14 

1917  

j 

17  545  tiS9 

797  327 

175  457 

22.01 

1918  

. 

13,  195  079 

902,499 

131,951 

14.62 

ALL  OTHER  STARCHES. 


1908  U              932  234 

$31,227 

$13,983 

44.78 

1909  1J           1,479,425 

43,729 

22,  191 

50.75 

1910  1^                64  973 

1,821 

974 

53  52 

1910  1                740,564 

33,843 

7,405 

21.88 

1911  .                                                       1                615,456 

31,805 

6,155 

19.38 

1912  1                631,435 

35,  462 

6,314 

17.81 

1913  1                677,785 

40,645 

6,778 

16.68 

1914  1  1                189,557 

10,219 

1,896 

18.55 

19142  .                                                              J              771,517 

41  893 

3,858 

9  21 

1915  952,934 

52,537 

4,764 

9.07 

1916  I  1        1,242,295 

78,807 

6,211 

7.88 

1917  888,345 

62,  132 

4,441 

7.15 

1918  i                               557  100 

63  604 

2,785 

4.38 

i 

1  July  1  to  Oct.  3,  1913. 


2  Oct.  4,  1913,  to  June  30,  1914. 


EXPORTS. 


Exports  of  starch  from  the  United  States  from  1914-1918  have 
averaged  102,848,429  pounds  annually,  valued  at  $3,913,104.  Prac- 
tically all  of  this  is  cornstarch.  Prior  to  1918  all  exports  of  starch 
were  grouped  under  one  head  in  the  export  statistics  but  in  this 
year  38,659,323  pounds  of  "cornstarch  (except  for  table  use)"  were 
shown.  Over  half  of  the  exports  go  to  England.  Before  the  war  the 
Netherlands  and  Belgium  also  took  large  quantities. 

Exports  of  starch,  by  countries. 
[Fiscal  years.] 


1914 


1915 


1916 


Pounds. 

Value. 

Pounds. 

Value.           Pounds. 

Value. 

1  Oil  900 

$25  545 

3  751  577 

82  809 

658  353 

$14  380   

Netherlands            

3  571,199 

85,334 

13,  070,  665 

392,  496         16,  639,  188 

$439,  159 

England        

53,  020,  773 

1,200,560 

56,729,921 

1,426,942       119,696,706 

3,107,677 

Canada     

1,941,408 

63,  625 

1,379,346 

50,959          2,235,901 

70,928 

Cuba                

125  576 

3  683 

225,  484 

6,585               411,844 

12,385 

Japan  

1,  734,  160 

77,988 

731,417 

26,  867              849,  849 

27,020 

14  328 

347 

2,  063,  856 

61  809          3,822,921 

119,825 

All  other  

11,542,858 

285,699 

32,177,596 

959,  435         66,  528,  783 

1,799,920 

Total           

76,  713,  779 

1,825,230 

107  036  638 

2,939,453       210,185,192 

5,576,914 

18 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 
Exports  of  starch,  by  countries — Continued. 


Exported  to  — 

1917 

19181 

1918  » 

Pounds. 

Value. 

Pounds. 

Value. 

Pounds. 

Value. 

Austria          

Belgium  

Netherlands            

1.762,200 
96,498,389 
2,943,034 
2.383,028 
443,596 
7,304,465 
35,089,110 

$49,533 
3,075,309 
122,  551 
73,652 
15,  786 
246,  848 
1,137,844 

England  

16,  103,  199 
1,066,258 
1,291.265 
129,  488 
2,351,480 
14,882,700 

$1,023,009 
68,613 
90,780 
8,656 
134,053 
956,904 

21,  197,  974 
2,032,440 
3,635,212 
1,298 
2,305,346 
9,487,053 

$1,  177,  122 
122,376 
222,161 
120 
127,919 
570,  679 

Canada 

Cuba       

Japan 

France  .... 

All  other  

Total            

146,423,822 

4,  721,  533 

35,223,390 

2,282,015 

38,659,323 

2,220,377 

Starch,  all  other. 


2  Cornstarch  (except  for  table  use.) 


PRICES. 


Market  prices  are  quoted  for  cornstarch,  domestic  and  Japanese 
potato  starch,  rice  starch,  and  wheat  starch.  Cornstarch,  which  has 
always  been  quoted  at  the  lowest  price,  rose  from  about  2  cents  per 
pound  in  August,  1914,  to  about  6  cents  in  July,  1919.  The  price 
of  potato  starch  has  increased  from  about  5  cents  per  pound  in  August, 
1914,  to  about  10  cents  hi  July,  1919,  and  during  most  of  this 
period  it  has  been  quoted  at  slightly  over  12  cents.  The  domestic 
and  imported  potato  starches  bring  about  the  same  price,  although 
recently  the  imported  product  has  been  quoted  at  a  fraction  of  a 
cent  more  per  pound.  Hice  and  wheat  starch  are  relatively  unim- 
portant and  quotations  have  not  always  been  shown.  Wheat  starch 
sold  for  slightly  less  than  potato  starch  in  August,  1914,  but  in  July, 
1919,  it  was  quoted  at  9^  to  10  cents  per  pound. 

Wholesale  prices  of  starch  at  New  York. 
[Cents  per  pound,  spot.] 


Date. 

Corn- 
starch. 

Potato 
starch. 

Rice 
starch. 

Wheat 
starch. 

January,  1910  

2.  12  to  2.  28 

5   to   51 

6§  to  7 

5   to  5 

April,  1910  

1.97  to  2.  13 

4J  to   5 

7   to  8 

51  to  5} 

Julv,  1910     

1.  72  to  1.  88 

3j  to   5 

7   to  8 

5|  to  5j 

October,  1910  

1.  60  to  1.  76 

4   to   51 

7   to  8 

4|  to  5J 

January   1911         

1.52  to  1.  68 

4   to   5J 

7   to  8 

4*  to  51 

•Vpril  1911 

1.37  to  1  53 

4   to   51 

7    to  8 

4|  to  51 

July,  1911  

1.  70  to  1.86 

41  to    4| 

7    toS 

4|  to  5J 

October  1911           

2.  10  to  2.  26 

4    to    41 

7    to  8 

4?  to  51 

January,  1912         

1.  *2  to  1.  96 

5}  to   5J 

7    to  8 

4J  to  51 

April,  1912  

2.  07  to  2.  21 

5!  to    oi 

7   to  8 

4?  to  51 

Julv,  1912     

2.  55  to  2.  76 

51  to    54 

7    to  8 

4$  to  5 

Of  totxr,  1912  
January  1913                                       

2.  25  to  2.  36 
2.  00  to  2.  11 

5J  to    5i 
51  to    5J 

7    to  8 
7   to  8 

4tto5 
4|  to  5 

April   1913       

1.  65  to  1.  76 

51  to    5i 

4|  to  5J 

Jul  v,  1913  

1.  92  to  2.  03 

51  to    5i 

7    to  8 

4£  to  5 

Octolxjr  1913                          

2.  34  to  2.  45 

5}  to    5* 

7    to8 

4|  to  53 

January   1914 

2  34  to  2.46 

51  to    5J 

7    to  8 

4|  to  5 

April  1914                                     

1.  84  to  1.  95 

51  to    5J 

7   to  8 

4i  to  5J 

July   1914          ..  .   .          

1.  99  to  2.  10 

5J  to    5J 

7    toS 

4?  to  51 

October,  1914      

2.  29  to  2.  40 

51  to    5i 

7    to  8 

4jto5j 

January   1915                             

1.  99  to  2.  10 

51  to   5i 

7    to  8 

4J  to  5J 

Vpril   1915       

2.  15  to  2.  26 

5}  to   5* 

7    to  8 

4|  to  51 

July   1915 

2.  35  to  2.  46 

5)  to   5J 

7    to  8 

4}  to  55 

October   1915                 

2.  15  to  2.  26 

5J  to    5i 

7    to  8 

4J  to  5J 

January   1916         

2.  05  to  2.  16 

51  to   5i 

7    to  8 

41  to  5j 

Ann].  1910... 

2.  25  to  2.  36 

6   to   6i 

DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 

Wholesale  prices  of  starch  at  New  York — Continued. 


19 


Date. 

Corn- 
starch. 

Potato 
starch. 

Rice 
starch. 

Wheat 
starch. 

July,  1916 

2  25  to  2  31 

6  to  64 

October  1916 

2  65  to  2  71 

6   to   M 

January   1917 

2  85  to  2  91 

0   to   8i 

April  1917       .   .                   

3.  05  to  5.  11 

12$  to  13 

Julv   1917 

5  05  to  5  18 

12J  to  13 

October  1917 

6  30  to  6  48 

12J  to  13 

January  1918         

6  30  to  6.  48 

12J  to  13 

April   1918 

6  30  to  6  48 

12   to  154 

July   1918             .     . 

5  50  to  7  00 

12J  to  13 

October,  1918      

6.  00  to  7.  00 

12J  to  13 

January   1919 

4  15  to  5  00 

11J  to  12J 

April  1919       

4  52  to 

7J  to   8 

July   1919  

5.  77  to  5.  99 

9    to    9J 

19  to.. 

9.J  to  10 

TARIFF    HISTORY. 

All  starches  and  preparations  fit  for  use  as  starch  were  dutiable  at 
L}  cents  per  pound  under  the  act  of  1890.  The  rate  was  reduced  to  1£ 
cents  in  1894.  Starch  made  from  potatoes  was  specifically  provided 
for  in  the  act  of  1883  at  2  cents  per  pound  and  in  the  act  of  1909 
at  the  rate  of  1-^  cents.  In  the  act  of  1913  the  rate  for  potato  starch 
was  reduced  to  1  cent  and  that  for  all  other  starches  and  prepara- 
tions fit  for  use  as  starch  was  reduced  to  one-half  cent  per  pound. 


Rates  of  duty  on  starch. 

Act  of— 

graph"                          Tariff  classification  or  description  . 

Rates  of  duty,  specific 
and  ad  valorem. 

1883 

269     Potato    *    *    *    starch                                                          

2  cent's  per  pound. 

1890 
1894 
1897 

323     Starch,  including  all  preparations,  from  whatever  substance 
produced,  fit  for  use  as  starch. 
232     Starch,  including  all  preparations,  from  whatever  substance 
produced,  commonly  used  as  starch. 
2S5     Same  as  1890  "         .                 ...              ....          

2  cents  per  pound. 
1\  cents  per  pound. 
Do. 

1909 

296     Starch  made  from  potatr.es       

U,  cents  Tier  pound. 

1913 

296  j  All  other  starch,  including  all  preparations,  from  whatever 
substance  produced,  fit  for  use  as  starch. 

I'cent  per  pound. 
Do 

2:54     All  other  starch,  including  all  preparations,  from  whatever 
substance  produced,  fri  for  use  as  starch. 

i  cent  per  pound. 

DEXTRINE. 

DESCRIPTION. 

Dextrine  is  a  gummy  substance  produced  from  starch  by  heating 
either  alone  or  with  a  dilute  acid.  It  is  sometimes  considered  to  be 
an  intermediate  product  between  starch  and  glucose.  It  is  soluble  in 
water  and  has  strong  adhesive  properties.  Dextrine  appeal's  on  the 
market  as  potato  dextrine,  corn  dextrine,  tapioca  dextrine,  British 
gum,  and  burnt  starch.  "British  gum"  and  "burnt  starch"  are  com- 
mercial terms  usually  applied  to  the  cruder  product. 


20  DOMESTIC   POTATO-PRODUCT   INDUSTRIES. 

USES. 

Dextrine  is  used  in  over  70  different  industries,  but  most  exten- 
sively in  the  dyeing,  printing,  and  finishing  of  textile  fabrics.  Large 
quantities  are  used  for  thickening  mordants  in  dyeing  and  printing 
and  as  sizing  for  cotton  goods  and  paper.  Another  and  very  impor- 
tant use  is  in  the  preparation  of  gummed  labels,  envelopes,  and  postage 
stamps.  Dcxtrines  are  emploved  as  substitutes  for  such  natural  gums 
as  gum  arabic  and  tragacanth  in  preparing  felt,  in  the  manufacture  of 
ink,  and  in  many  other  uses. 

MANUFACTURE. 

Dextrine  is  made  by  heating  starch  in  an  iron  cylinder  either  by  a 
free  flame  or  in  an  oil  bath  or  steam  jacket.  It  is  also  made  by 
moistening  starch  with  dilute  acid,  drying  in  the  ah-  or  by  heating  to 
a  low  temperature,  and  finally  placing  the  finely  ground  product  in  a 
suitable  oven,  heated  with  superheated  steam.  The  powder  is  con- 
tinuously stirred  to  secure  intimate  mixture.  When  dextrine  is  made 
with  acid  it  is  usually  lighter  in  color  but  contains  some  sugar,  and 
therefore  does  not  have  as  strong  adhesive  properties  as  when  made 
by  heat  alone.  In  the  conversion  of  starch  to  dextrine  there  is  a  loss 
of  approximately  20  to  25  per  cent;  however,  a  part  of  this  is  com- 
pensated by  water  absorbed  by  the  dextrine. 

The  properties  of  the  dextrine  produced  will  depend  upon  the  source 
of  the  starch  used.  Potato  starch  produces  the  finest  product  with 
the  greatest  adhesive  power  and  is  generally  preferred  in  textile 
trades.  Tapioca  or  cassava  starch  produces  dextrine  very  suitable 
for  gumming  envelopes  and  postage  stamps,  and  the  United  States 
Bureau  of  Engraving  and  Printing  formerly  consumed  about  250  tons 
of  tapioca  dextrine  each  year.  During  the  war,  when  imports  of 
tapioca  were  restricted,  the  change  was  made  to  a  mixture  of  corn 
and  tapioca  dextrine,  and  it  is  believed  that  the  product  has  proved 
satisfactory. 

DOMESTIC    PRODUCTION. 

The  largest  plants  for  the  production  of  dextrine  are  now  located  in 
the  United  States.  Before  the  war  little  or  no  potato  dextrine  was 
manufactured  and  the  production  was  restricted  almost  entirely  to 
corn  dextrine.  Tapioca  dextrine,  which  was  formerly  imported  from 
England,  is  now  made  in  greater  quantities  here  than  abroad.  The 
starch  from  which  it  is  manufactured  is  imported  from  Java.  The 
Census  of  Manufactures  gives  the  following  statistics  for  the  domestic 
production  of  dextrines: 

Domestic  production  of  dextrine. 


1904 

1909 

1914 

Dextrincs:' 

6,651,731 

16,  148,931 

18,913,641 

Value        

$231,708 

$610,  999 

$705,  584 

'  Statistics  for  1904  anil  1900  include  "Gums,  other  than  rosin." 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


21 


FOREIGN    PRODUCTION. 

Before  the  war  potato  dextrine  was  made  almost  entirely  in 
Germany  and  Holland  and  tapioca  dextrine  largely  in  England. 
The  German  production  of  potato  dextrine  for  the  fiscal  year  1910-11 
amounted  to  49,310,288  pounds  valued  at  $1,404,914.  In  Japan  the 
production  of  potato  starch  increased  enormously  during  the  war 
period  but  up  to  the  present  time  she  has  exported  starch  rather  than 
dextrine  to  the  United  States. 

IMPORTS    AND    EXPORTS. 

Before  the  war  the  United  States  imported  large  quantities  of 
refined  potato  dextrine  from  Germany  and  Holland  and  considerable 
quantities  from  England.  The  annual  imports  averaged  over  5,000,- 
000  pounds  from  1910  to  1914  but  dwindled  to  less  than  100,000 
pounds  in  1918. 

Exports  of  dextrine  have  never  been  shown  in  Commerce  and  Navi- 
gation of  the  United  States,  but  it  is  believed  that  they  are  insignifi- 
cant. 

Imports  for  consumption. 

DEXTRINE,   DEXTRINE  SUBSTITUTES.  SOLUBLE  STARCH.  CHEMICALLY  TREATED 
STARCH,  BURNT  STARCH,  GUM  SUBSTITUTES,  OR  BRITISH  GUM. 


1 

Rates 
Fiscal  years.                       °\^7 
pound). 

Quantities      Values 
(pounds;,     (dollars). 

Duties  col- 
lected (dol- 
lars). 

Value  per 
unit  of 
quantity. 

Actual 
and  com- 
puted ad 
valorem 
rate. 

Cents. 
1908  .  .                                                            2 

3  958  925           122,870 

79,  179  00 

SO  031 

Per  cent. 
64  44 

1909  2 

6  062  353          184  476 

121  247  00 

030 

65  73 

1910  2 

45.5,  .546  ,          13,595 

9,110.92 

.030 

67  00 

1910  ...                                                            H 

5  936,215           183  508 

89,043  29 

031 

48  52 

1911  1J 

6,357,790           190,660 

95,366  79 

030 

50  02 

1912  U 

5,  352,  277           188,  332 

80,284.24 

.035 

42  63 

1913  ....                         .                        1* 

5  096  891           ISO  296 

76  453  40 

035 

42  40 

1914  1J 

986,  644            32,  433 

14,  799.  70 

.033 

45  03 

DEXTRINE  MADE  FROM  POTATO  STARCH  OR  POTATO  FLOUR. 


1914  

1J 

5,226,421 

162,688 

1915  

H 

4,590,437 

154,087 

1916 

if 

720,106  : 

40,  552 

1917  

l| 

210,948 

17,  832 

1918 

li 

99  228 

9,116 

65, 330. 27 

57, 380. 00 

9,001.00 

2,636.00 

1,240.00 


$0.031 
.034 
.056 
.084 
.092 


40.16 
37.20 
22.20 
14.79 
13.61 


DEXTRINE   N.  S.  P.  F.,  DEXTRINE   SUBSTITUTES,  BURNT  STARCH,  OR  BRITISH  GUM. 


1914. 
1915. 
1916. 
1917. 
191S. 


471,491 
274,668 
154,  &s2 
32, 773 
505 


IS, 180 
12,028 
10,049 
2,  855 
50 


3,536.18 

2,060.00 

1,161.00 

245. 00 

3.00 


SO. 039 
.044 
.066 
.087  ! 
.099  , 


19.45 
17.13 
11.56 
8.61 
7.58 


PRICES. 

Potato  dextrine  is  usually  the  highest  priced  of  the  dextrines,  and 
corn  dextrine  the  cheapest.  In  August,  1914,  imported  potato  dextrine 
sold  at  6  to  7  cents  per  pound,  domestic  potato  dextrine  at  54-  to  7 
cents,  British  gum  at  3J  to  3j  cents,  and  corn  dextrine  at  3  to  3^ 
cents  per  pound.  Since  that  time  the  prices  have  risen,  until  in  the 
latter  part  of  1918  domestic  potato  dextrine  was  quoted  at  20  cents. 
Corn  dextrine  during  this  period  sold  for  8  to  S£  cents. 


22 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 


Wholesale  prices  of  dextrine  at  New  York. 
[Cents  per  pound,  spot.] 


Date. 

Imported 
potato 
dextrine. 

Domestic 
potato 
dextrine. 

Corn 
dextrine. 

British  gum. 

January,  1910  

6   to   7 

5   to   6J 

2  79  to  2  95 

3  14   to  3  30 

April,  1910       

6   to   7 

5|  to  6i 

2  72  to  2  88 

2  97   to  3  13 

July,  1910  

6   to   7 

5f  to   6J 

2  47  to  2  63 

2  72   to  2  88 

October,  1910  

Si  to   7 

5?  to   6i 

2  37  to  2  53 

2  62   to  2  78 

January,  1911        

5J  to   7 

5J  to   6| 

2  32  to  2  48 

2  52   to  2  68 

April,  1911  

5i  to   7 

54  to   7 

2  12  to  2  28 

2  37    to  2  53 

Julv,  1911     ..                 

5i  to   7 

5   to   64 

2  47  to  2  88 

2  72   to  2  88 

October,  1911      

64  to    74 

5-i  to   7 

2  87  to  3  03 

3  07    to  3  23 

January,  1912  

6   to   7 

Si  to   7 

2  82   to  2  % 

April,  1912       

6  to   7 

54  to    7 

3  07    to  3  21 

Julv,  1912     

6   to   7 

54  to   7 

3  55   to  3  66 

October,  1912  

6   to   7 

54  to   7 

3  25    to  3  36 

January,  1913  

6   to   7 

Si  to   7 

3.00   to  3  11 

April,  1913  

6   to   7 

Si  to   7 

2  67    to  2  76 

July,  1913 

6   to    7 

5i  to   7 

2  95    to  3  06 

October,  1913         

6    to    7 

5*  to    7 

3  27    to  3  38 

January,  1914  

6   to   7 

54  to   7 

317    to  3  28 

April,  1914                

6   to   7 

5£  to    7 

2  73    to  2  78 

Julv,  1914  

6   to   7 

Si  to    7 

3  02    to  3  13 

October,  1914                              .'          ..     .. 

10   to  12 

8    to  10 

3  32   to  3  43 

January,  1915         

10    to  12 

8    to  10 

4    to  5 

3  00   to  3  125 

April,  1915 

10    to  12 

8    to  10 

3  125  to  3  25 

Julv,  1915     ^  

10    to  12 

8    to  10 

3  333  to  3  50 

October,  1915      

10    to  12 

8    to  10 

3.  125  to  3  25 

January,  1916  '  

10    to  12 

8   to  10 

5   to  7 

3.00    to  3.  125 

April,  1916       

12    to  13 

8   to  10 

3  25    to  3  333 

Julv,  1916 

12    to  13 

8    to  10 

3  20    to  3  25 

October,  1916           

12    to  13 

8   to  10 

3  65    to  3  71 

January,  1917         

12    to  13 

8    to  10 

6    to  7 

3  85    to  3.  91 

April,  1917                      

12    to  13 

12V  to  16 

5  20   to 

July,  1917  

12    to  13 

12i  to  . 

6  30   to  6  39 

October  1917 

12    to  13 

12"  to  12J 

7  55    to  7  64 

January,  1918 

18  to 

14  \  to 

7    to  8 

(l) 

April,  1918  

19   to  .   . 

16    to  lf>4 

7i  to  8J 

w 

July,  1918       

(!) 

194  to  20^ 

8   to  9 

(1) 

October,  191S      

0) 

20"  to  20| 

8    to  8$ 

(1) 

January,  1919  

(') 

17J  to  19 

6    to  7$ 

6.00   to  7.  00 

April,  1919       

15   to  17 

15    to  17 

f>\  to  6 

5.  50    to  6.  00 

Julv,  1919     

17    to  18 

17   to  18 

7    to  7} 

7.  25   to  7.  50 

1  Nominal. 
TARIFF    HISTORY. 

Dextrine  and  British  gum  were  first  specifically  mentioned  in  the 
tariff  act  of  1883  and  were  given  a  duty  of  1  cent  per  pound.  This 
rate  was  increased  to  H  cents  in  1890  and  to  2  cents  in  1897,  but 
restored  to  IV  cents  in  1909.  In  the  act  of  1913  dextrine  made  from 
potato  starch  was  dutiable  at  1£  cents  per  pound  and  all  others, 
including  soluble  or  chemically  treated  starch,  were  dutiable  at  three- 
fourths  of  1  cent  per  pound.  The  rates  and  classifications  since 
1883  are  shown  in  the  following  table: 

Rates  of  duty. 


Act  of— 

Para- 
graph. 

TarilT  classification  or  description. 

Rates  of  duty. 

1883  

1X90  
1H94 

19 
324 
233 

Dextrine,  burnt  starch,  gum  substitute  or  British  gum  
Dextrine,  burnt  starch,  gum  substitute  or  Hritish  gum  
do                                                                                        .   .. 

1  cent  per  pound, 
li  cents  per  pound. 
Do. 

1S!»7 

2Mi 

do                                                      

2  cents  per  pound  . 

1900  
1913  

297 
36 

Dextrine,  dextrine  substitutes,  soluble  starch  or  chemically 
treated  starch,  burnt  starch,  gum  substitute  or  Hritish  gum. 
(turns:    *    *    *    dextrine,  made  from  potato  starch  or  po- 
tato flour. 
Dextrine,  not  otherwise  provided  for,  burnt  starch  or  British 
gum,   dextrine   substitutes,   and   soluble   or   chemically 
treated  starch. 

H  cents  per  pound. 
1}  cents  per  pound. 
2  cent  per  pound. 

DOMESTIC  POTATO-PRODUCT  INDUSTRIES.  23 

CUSTOMS    DECISIONS. 

Potato  starch  which  has  been  chemically  treated  so  that  it  is  in 
part  soluble  in  hot  water  and  which  is  known  as  soluble  starch, 
although  a  portion  of  it  is  insoluble  in  water,  is  dutiable  under  the 
provision  in  paragraph  36  for  "soluble  or  chemically  treated  starch," 
and  not  under  paragraph  234  as  "starch  made  from  potatoes." 
(G.  A.  7633,  T.  D.  34906  of  1914.) 

A  starch  product  commercially  known  as  white  dextrine,  which  is 
technically  neither  starch  nor  dextrine,  was  held  dutiable  under 
paragraph  28G  of  the  act  of  1897  as  "dextrine"  and  not  under  para- 
graph 285  as  "starch."  (Morning  star  v.  United  States,  159  Fed., 
287  of  1907.) 

BIBLIOGRAPHY. 

Bliieher,  H.,  Auskunftabuch  fur  die  Chemische  Industrie,  pages  1134-1137,  Berlin, 
1911. 

Cathcart,  W.  II.  Cornstareh  in  the  Textile  Industry  (article),  The  Textile  American, 
December,  19LS,  Boston. 

Census  of  Manufactures,  The  Glucose  and  Starch  Industry,  Bureau  of  Census,  Depart- 
ment of  Commerce,  Washington,  191.4. 

Gore,  II.  ('.,  The  Utilization  of  the  Potato,  Bureau  of  Chemistry,  United  States  De- 
partment of  Agriculture,  Washington;  also  other  unpublished  reports. 

Japan:  Trade  During  the  War,  United  States  Tariff  Commission,  page  34,  Washington, 
1019. 

Rolfe,  G.  W.,  Starch,  Dextrin,  and  Gluten,  Roger's  Manual  of  Industrial  Chemistry, 
pages  7H5-783,  New  York.  1915. 

Skinner.  Robert  P.,  Utilization  of  Potaotes  in  Europe.  Special  Consular  Reports 
No.  64,  Department  of  Commerce,  Washington,  1914. 

Thorpe,  E.,  A  Dictionary  of  Applied  Chemistry,  V.  149-190,  London,  1917. 

Vierteljahrshefte  zur  Stati«tik  des  Deutschen  Reichs,  Berlin,  1914. 


APPENDIX. 

(Issued  August  18, 1915.) 
UNITED  STATES  DEPARTMENT  OP  AGRICULTURE,  BUREAU  of  CHEMISTRT. 

SERVICE  AND  REGULATORY  ANNOUNCEMENTS,  NO.  14. 

130.  USE  OF  THE  TERMS  "  POTATO  FLOUR,"  "  RlCE  FLOUR,"  ''CASSAVA  FLOUR,"  AND 

"TAPIOCA  FLOUR." 

It  has  come  to  the  attention  of  this  bureau  that  such  products  as  potato  starch, 
rice  starch,  and  cassava  starch  are  often  designated  hy  the  terms  "potato  flour, 
"rice  flour,"  and  "cassava  flour"  or  "tapioca  flour."  In  the  opinion  of  this  bureau 
the  term  "flour"  when  applied  to  potato  or  rice  or  cassava  products  has  the  same 
meaning  as  when  applied  to  other  products,  that  is,  a  finely  divided  or  powdered 
product  containing  proieids,  fat,  fiber,  and  ash  constituents  from  the  edible  portions 
of  the  potato,  rice  or  cassava,  and  not  such  a  product  containing  the  starch  alone. 


DECISIONS  OF  TREASURY  DEPARTMENT,  BOARD  OF  GENERAL  AP- 
PRAISERS, AND  COURT  OF  CUSTOMS  APPEALS. 

POTATO  STARCH. 

(T.  D.  16955— G.  A.  3383.) 
Before  the  United  States  General  Appraisers  at  New  York,  February  4,  1896. 

In  the  matter  of  the  protests,  25843b-11913  and  25959b-11932,  of  M.  L.  Barrett,  against  the  decision  of  the 
collector  of  customs  at  Chicago,  111. .as  to  the  rate  and  amount  of  duties  chargeable  on  certain  potato 
starch,  imported  per  Venecia  and  Dania,  and  entered  on  December  13,  1894,  and  January  4, 1895, 
respectively. 

Opinion  by  LUNT,  General  Appraiser. 
We  find- 
Cr)  That  Mr.  M.  L.  Barrett  imported  into  the  port  of  Chicago,  111.,  December  13, 
]894,  and  January  4,  1895,  certain  merchandise  from  Germany  invoiced  as  potato 
flour  upon  which  duty  was  assessed  at  the  rate  of  l.\  cents  per  pound  under  the  pro- 
visions of  paragraph  232,  act  of  August  28,  1894,  and  which  is  claimed  to  be  dutiable 
at  20  per  cent  ad  valorem  under  section  3  of  said  act  as  a  nonenumerated  manufactured 
article. 

(2)  The  said  merchandise  is  potato  starch,  powdered,  and  known  in  the  trade  as 
potato  Hour.  It  is  the  same  article  that  was  passed  upon  in  the  case  of  The  Union 
National  Bank  of  Chicago  c.  Seeberger  (30  Fed.  Hep.,  429 1. 

Potato  starch  is  very  extensively  manufactured  in  the  United  States  and  is  sold 
upon  the  market  in  the  form  of  granules  of  considerable  size  and  also  ground  and 
bolted.  In  the  latter  condition  it  is  called  potato  flour.  Probably  90  per  cent  or 
more  of  this  kind  of  starch  is  consumed  in  the  manufacture  and  finishing  of  textile 
fabrics,  it  having  a  peculiar  quality  of  penetrating  fabrics  and  .giving  the  requisite 
stiffness  without  showing  upon  the  surface,  while  cornsturch  and  wheat  starch  are 
more  particularly  adapted  to  giving  a  surface  finish  to  fabrics.  In  proportion  to  the 
entire  quantity  of  starch  produced  only  a  small  percentage  is  used  for  laundry  purposes. 
Powdered  potato  siarch.  or  potato  flour,  is  used  in  considerable  quantities  by  con- 
fectioners. 

In  the  manufacture  of  potato  starch  in  Germany,  the  starch,  after  having  been 
separated  from  the  potato  pomace,  is  generallv  dried  in  centrifugal  machines,  and 
consequently  all  this  product  exported  from  (iermany  is  in  the  form  of  potato  Hour, 
while  in  those  iactories  in  this  country  vhere  centrifugals  are  not  used  the  starch  is 
generally  put  upon  the  market  in  the  form  of  laru-e  granule?  and  is  afterwards  powdered 
if  so  required. 

The  protests  are  overruled  and  the  decision  of  the  collector  affirmed  in  each  case. 

25 


26  DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 

POTATO  FLOUR. 

(T.  D.  34236.) 

Potato  flour  obtained  by  reducing  entire  potatoes  to  the  state  of  flour  by  desiccating  and  grinding,  dutiable 
as  a  nonenumerated  manufactured  article  at  the  rate  of  15  per  cent  ad  valorem,  under  paragraph  385, 
tariff  act  of  1913. 

TREASURY  DEPARTMENT,   March  5,  1914. 

SIR:  I  have  to  acknowledge  receipt  of  your  letter  of  the  21st  ultimo,  relative  to  the 
classification  of  potato  flour  obtained  by  reducing  entire  potatoes,  sometimes  with 
and  sometimes  without  the  skins,  to  the  state  of  flour,  by  desiccating  and  grinding, 
the  process  involving  the  application  of  sufficient  heat  to  materially  modify  the  starch 
granules. 

You  cite  the  decision  of  the  board,  Abstract  23912  (T.  D.  30901),  wherein  it  was 
held  that  similar  merchandise  imported  under  the  tariff  act  of  1909  was  properly 
dutiable  as  a  nonenumerated  manufactured  article  under  paragraph  480  of  the  said 
act,  and  was  not  dutiable  as  "vegetables,  prepared." 

The  board,  in  the  decision  referred  to  by  you,  cited  its  previous  decision,  G.  A. 
5534  (T.  D.  24904),  wherein  it  was  held  that  certain  bean  flour,  which  had  been 
assessed  with  duty  as  a  substance  fit  for  use  as  starch,  was  properly  dutiable  as  a  non- 
enumerated  manufactured  article  under  section  6  of  the  act  of  1897.  In  this  decision 
the  board  cites  its  previous  decision,  G.  A.  5361  (T.  D.  24513),  holding  that  the  pro- 
vision for  prepared  vegetables  does  not  include  an  article  in  which  the  manufac- 
turing process  has  advanced  so  far  that  the  identity  of  the  vegetable  is  practically 
lost. 

Following  the  decisions  cited,  the  department  is  of  the  opinion  that  the  provision 
in  paragraph  581  for  potatoes,  dried,  desiccated,  or  otherwise  prepared  should  be 
limited  to  potatoes  which  have  not  lost  their  identity  as  such.  You  are  accordingly 
directed  to  assess  duty  upon  potato  flour  of  the  character  under  consideration  at  the 
rate  of  15  per  cent  ad  valorem  as  a  nonenumerated  manufactured  article  under  para- 
graph 385  of  the  tariff  act. 

Respectfully,  CHARLES  S.  HAMLIN, 

(100269.)  Assistant  Secretary. 

COLLECTOR  OF  CUSTOMS,  Neiv  York, 


DESICCATED  POTATOES. 

(6  Ct.  Gust.  Appls.,  154,  T.  D.  35397.) 
Stein,  Hirsch  &  Co.  et  al.  v.  United  States  (No.  1503). 

POTATO  GROUND  MEAL  OR  FLOUR.— This  article  is  produced  from  potatoes  only  and  contains  the  entire 
and  chamically  unaltered  elements  of  which  the  constituent  potatoes  themselves  were  composed. 
It  has  not  acquired  a  new  name,  use,  or  character,  and  serves  such  culinary  purposes  as  potatoes  them- 
selves. It  is  potatoes,  prepared,  and  falls  within  the  provisions  of  paragraph  581,  tariff  act  of  1913. 

UNITED  STATES  COURT  OF  CUSTOMS  APPEALS,  MAY  3,  1915. 
Appeal  from  Board  of  United  States  General  Appraisers,  Abstract  37090  (T.  IX  35020). 

(Reversed.) 

Before  Montgomery,  Smith,  Barber,  De  Vries,  and  Martin,  Judges. 

MARTIX,  Judge,  delivered  the  opinion  of  the  court: 

The  present  merchandise  was  imported  under  the  tariff  act  of  1913.  It  was  invoiced 
as  "kartoffelwalzmehl,"  which  is  said  by  counsel  to  be  a  German  word  meaning 
"potato  ground  meal." 

The  appraiser  reported  that  the  article  in  question  consisted  of  potato  flour  obtained 
by  reducing  entire  potatoes,  with  or  without  the  skin,  to  the  state  of  flour  by  des- 
iccating and  grinding,  the  process  involving  the  application  of  sufficient  heat  to  mate- 
rially modify  the  starch  granules.  The  article  was  returned  for  duty  as  a  nonenu- 
merated manufactured  article,  at  15  per  cent  ad  valorem,  under  paragraph  385,  tariff 
act  of  1913,  in  accordance  with  the  department's  instructions  contained  in  T.  D. 
3423ii.  Dutv  was  assessed  accordinelv. 


DOMESTIC  POTATO-PRODUCT  INDUSTRIES.  27 

The  importers  protested  against  the  assessment,  claiming  that  the  merchandise  was 
entitled  to  free  entry  as  desiccated  or  prepared  potatoes  under  paragraph  581,  act  of 
1913,  or  if  dutiable  at  all  that  it  was  only  dutiable  at  10  per  cent  ad  valorem  under 
the  retaliatory  proviso  of  that  paragraph.  The  protest  also  claimed  a  rebate  of  5  per 
cent  on  any  duties  which  should  be  assessed  upon  the  merchandise  by  virtue  of 
subsection  7  of  paragraph  J  of  section  4  of  the  tariff  act  of  1913.  This  latter  claim, 
however,  was  not  sustained  by  any  proofs  at  the  trial  before  the  board,  and  therefore 
may  be  regarded  as  abandoned  for  the  present  case. 

The  protest  was  tried  upon  evidence  before  the  Board  of  General  Appraisers  and 
was  overruled,  from  which  decision  the  importers  now  appeal. 

The  question  therefore  is  whether  the  present  merchandise  is  desiccated  potatoes 
or  potatoes  otherwise  prepared,  governed  by  paragraph  581,  tariff  act  of  1913,  or  is  a 
nonenumerated  manufactured  article,  governed  by  paragraph  385  of  that  act. 

The  following  is  a  copy  of  the  two  competing  paragraphs  thus  cited: 

581.  Potatoes,  and  potatoes  dried,  desiccated,  or  otherwise  prepared,  not  specially  provided  for  in  this 
section:  Provided,  That  any  of  the  foregoing  specified  articles  shall  be  subject  to  a  duty  of  10  per  cent  ad 
valorem  when  imported  directly  or  indirectly  from  a  country,  dependency,  or  other  subdivision  of  govern  - 
ment  which  imposes  a  duty  on  such  articles  imported  from  the  United  States. 

385.  That  there  shall  be  levied,  collected,  and  paid  on  the  importation  of  all  raw  or  unmanufactured 
articles  not  enumerated  or  provided  for  in  this  section  a  duty  of  10  per  cent  ad  valorem,  and  on  all  articles 
manufactured,  in  whole  or  in  part,  not  provided  for  in  this"  section,  a  duty  of  15  per  cent  ad  valorem. 

The  testimony  discloses  that  the  present  article  is  produced  from  potatoes.  The 
potatoes  are  cut  into  pieces  about  the  size  of  ordinary  potato  chips,  which  are  processed 
until  they  are  thoroughly  desiccated.  These  desiccated  chips  are  used  for  culinary 
purposes  in  the  place  of  potatoes.  A  certain  part  of  this  product,  however,  is  ground 
into  meal  of  several  degrees  of  fineness,  one  kind  resembling  corn  meal  in  appearance, 
the  other  being  as  fine  as  common  wheat  flour.  The  present  merchandise  belongs  to 
the  class  last  described  and  is  especially  useful  for  making  bread,  either  alone  or  in 
combination  with  other  materials.  It  is  also  useful  for  other  culinary  purposes,  of 
which  the  making  of  soup  may  be  named  as  an  instance.  The  appraiser  reports  that 
the  process  above  described  has  the  effect  of  materially  modifying  the  starch  granules 
of  the  constituent  potatoes.  This  statement  seems  to  be  contradicted  by  the  testimony 
of  the  witness  Goldfrank,  but  both  the  statement  and  the  testimony  are  somewhat 
indefinite.  The  court,  however,  does  not  understand  that  any  chemical  change  in 
the  substance  of  the  potatoes  is  effected  by  the  drying  and  grinding  processes  to  which 
they  are  subjected. 

The  three  products  above  described,  namely,  the  dessicated  chips,  the  coarser 
meal,  and  the  finely  ground  flour,  are  all  subjects  of  importation  into  this  country, 
but  the  fine  flour  is  the  form  which  is  most  frequently  imported.  The  present  question 
is  whether  that  product  is  free  of  duty  as  potatoes  "desiccated,  or  otherwise  prepared,  " 
under  paragraph  581,  above  copied.  As  is  stated  above,  the  appraiser  in  his  official 
report  named  or  described  the  article  as  "potato  flour." 

The  record  contains  the  testimony  of  two  witnesses  only.  One  of  these  testified 
that  the  present  article  is  "desiccated  potatoes";  the  other  witness  stated  that  the 
article  is  "ground  potato  or  potato  flour."  Neither  statement  is  in  the  nature  of 
commercial  testimony  tending  to  prove  a  peculiar  trade  usage  of  the  statutory  terms 
in  question;  those  terms  therefore  must  be  accepted  in  this  case  according  to  their 
common  or  ordinary  signification. 

It  therefore  appears  that  the  present  article  is  produced  from  potatoes  only,  and 
that  it  contains  the  entire  and  chemically  unaltered  elements  of  which  the  constitu- 
ent potatoes  themselves  were  composed.  '  It,  also  appears  that  the  article  is  used  like 
potatoes  for  culinary  purposes,  and  apparently  possesses  the  same  food  values  as 
potatoes.  It  is  truo  that  it  is  chiefly,  and  indeed  almost  exclusively,  used  for  making 
bread,  but  it  may  also  be  used  in  making  soup  and  other  dishes.  The  fact  that  the 
article  is  used  in  making  bread  does  not  imply  that  it  has  ceased  to  be  prepared  pota- 
toes, since  bread  is  also  made  from  potatoes  which  are  not  first  desiccated  like  the 
present  product.  The  following  quotations  relate  to  this  subject. 

Century  Dictionary: 

P'tfuto  brrad. — A  broad  madp  of  potatoes  which  have  been  boiled,  pressed  till  they  are  dry,  beaten  up, 
kneaded  with  wheat  Hour,  aniseed,  and  yeast,  and  then  baked. 

Standard  Dictionary: 

Potato  bread.— \  bread  made  of  boiled  sweet  (sometimes  white)  potatoes  mixed  with  wheat  flour  and 
yeast. 

It.  therefore  appears  to  be  within  common  knowledge  that  potatoes  are  used  in 
making  bread  and  that  this  is  done  at  times  by  first  boiling  the  potatoes  and  then 
mashing  them,  so  that  they  may  be  kneaded  with  wheat  flour  and  baked  into  bread. 
The  use  of  the  present  article  in  making  bread  does  not  differ  essentially  from  the  one 


28  DOMESTIC  POTATO-PRODUCT  INDUSTRIES. 

just  above  described  as  a  commonly  known  use  of  potatoes.  It  may  also  be  noted 
that  wherever  the  present  article  is  named  or  described  in  the  record  the  term  "potato  " 
appears  as  part  of  its  title.  The  article  is  therein  called  potato  ground  meal,  potato 
flour,  ground  potato,  or  desiccated  potatoes.  The  court  therefore  concludes  that 
after  all  the  present  article  has  not  acquired  a  new  name,  use,  or  character,  but  still 
retains  the  name  and  essential  characteristics  of  potatoes,  and  serves  such  culinary 
purposes  as  potatoes  themselves  serve.  The  article  differs  from  potatoes  in  their 
original  form  only  because  it  is  prepared  for  the  uses  to  which  potatoes  as  such  are 
applied.  It  is,  consequently,  "potatoes,  prepared,"  rather  than  a  new  manufacture 
from  potatoes.  Vitelli  &  Son  v.  United  States  (4  Ct.  Gust.  Appls.,  75;  T.  D.  33313). 

An  additional  consideration  may  be  suggested  in  support  of  this  conclusion.  The 
tariff  act  of  1909  laid  a  duty  of  40  per  cent  ad  valorem  upon  "vegetables,  prepared  in 
any  way"  (par.  252),  and  also  a  duty  of  25  cents  per  bushel  upon  "potatoes"  (par. 
263).  There  was  no  specific  provision  in  the  act  for  "potatoes,  dried,  desiccated,  or 
otherwise  prepared,"  such  as  nosv  appears  in  the  act  of  1913. 

When  merchandise  like  the  present  article  was  imported  under  the  tariff  act  of 
1909,  the  Government  assessed  the  same  with  duty  at  40  per  cent  ad  valorem  as  pre- 
pared vegetables  under  paragraph  252.  The  importers  protested,  claiming  assessment 
of  the  merchandise  as  a  nonenumerated  manufactured  article.  The  board  sustained 
such  protests,  holding  that  the  article  was  not  a  prepared  vegetable  under  paragraph 
252  or  the  act,  but  was  an  unenumerated  manufactured  article.  The  potato  para- 
graph of  the  act  of  1909  did  not  apply  to  the  case  at  all,  since  it  only  included  potatoes 
which  were  to  be  assessed  by  the  bushel.  The  following  board  decisions  under  the 
act  of  1909  severally  held  the  present  article  to  be  dutiable  as  a  nonenumerated  manu- 
factured article  rather  than  a  prepared  vegetable:  Abstract  23912  (T.  D.  30901), 
Abstract  24033  (T.  D.  30969),  Abstract  24537  (T.  D.  31207),  Abstract  25573  (T.  D. 
31589),  Abstract  24918  (T.  D.  31335),  Abstract  26347  (T.  D.  31832),  Abstract  26277 
(T.  D.  31813),  Abstract  27204  (T.  D.  32031),  Abstract  27464  (T.  D.  32126),  Abstract 
28784  (T.  D.  32618),  Abstract  28184  (T.  D.  32424). 

These  decisions  were  all  published  prior  to  the  tariff  revision  of  1913,  and  in  each 
decision  as  published  the  merchandise  itself  was  named  or  described  by  the  board  as 
"ground  desiccated  potatoes." 

In  the  light  of  the  foregoing  decisions,  holding  that  "ground  desiccated  potatoes" 
were  unenumerated  in  the  tariff  act  of  1909,  Congress  enacted  paragraph  581  of  the 
tariff  revision  of  1913,  and  provided  therein  for  the  free  entry  of  "potatoes,  and  pota- 
toes dried,  desiccated,  or  otherwise  prepared."  The  fact  that  "desiccated  potatoes" 
were  thus  enumerated  eo  nomine  in  the  act  of  1913,  following  the  foregoing  decisions 
dealing  with  the  present  article  under  that  name,  tends  strongly  to  the  conclusion 
that  this  identical  merchandise  was  within  the  contemplation  of  Congress  at  the 
enactment  of  the  latter  paragraph.  This  conclusion  is  strengthened  by  the  appearance 
of  the  phrase  "or  otherwise  prepared  "  in  the  same  provision. 

In  this  view  of  the  case  the  decision  of  the  board  is  re  versed,  and  the  case  is  remanded 
in  order  that  the  collector  may  assess  the  retaliatory  duty  of  10  per  cent  ad  valorem 
provided  for  by  paragraph  581,  supra,  in  case  it  be  found  that  the  present  merchandise 
is  "imported  directly  or  indirectly  from  a  country,  dependency,  or  other  subdivision 
of  government  which  imposes  a  duty  on  such  articles  imported  from  the  United 
States." 

It  may  be  added  that  counsel  have  cited  numerous  decisions  in  support  of  their 
respective  contentions.  These  have  been  examined,  but  need  not  now  be  discussed. 

Reversed. 

o 


JBRARY  FACILITY 


A    001  274  555    o 


